Custom, Excise & Service Tax Tribunal
M/S.Faridabad Metal Udyog Pvt. Ltd vs Cce, Delhi-Ii on 26 August, 2011
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, WEST BLOCK NO.II, R.K. PURAM, NEW DELHI-110066. BENCH-,,,,,SM Excise Appeal No.E/3319/09-SM [Arising out of Order-in-Appeal No.128-CE/Appl./DLH-IV2009 passed by the Commissioner of Central Excise (Appeals), Delhi-I]. M/s.Faridabad Metal Udyog Pvt. Ltd. Appellant Vs. CCE, Delhi-II Respondent
Present for the Appellant : Shri Naveen Mullick, Advocate Present for the Respondent:Smt. Jagdav, SDR Coram: HONBLE MR. D.N. PANDA, JUDICIAL MEMBER Date of Hearing/Decision:26.08.2011 ORDER NO. _______________ DATED:________ PER: D.N.PANDA Ld. Counsel submits that both the authorities below could not appreciate when and how interest on the duty payable is determinable. The dispute in question travelled a long distance from adjudication to second appeal. When the appeal was finally decided, the liability arose on that day for which the interest calculated in Annexure A to show cause notice is not leviable on the appellant. His further submission was that while show cause notice was issued on 28.11.2008, Rule 57-I (3) of Central Excise Rules 1944 was not prevalent. Therefore, the demand is not enforceable against the appellant.
2. Ld. DR on the other hand supports first appellate order and also submits that when the duty became due and if not paid, from the date of default till the payment of due to the Government, that shall earn interest for the state. She relies on the decision of the Tribunal in the case of CCE, Madurai vs. Sree Kaderi Ambal Steels Ltd. reported in 2009 (233) ELT 395. She also relies on para 8 of the first appellate order to submit that ld. Appellate authority has followed rightly the manner how interest shall be levied following Apex Court decision in Escape India Ltd. case reported in 2009 (239) ELT 385 (S.C.)
3. Heard both sides and perused the records. There is an admitted default in the case. The duty was not paid on the due date. The length of delay in payment of duty is well evident from record and also supported by Annexure A to show cause notice. It is elementary principal of jurisprudence that right to interest follows right to restoration. Section 11AA of Central Excise Act, 1944 has such object to achieve. It may also be stated that when public revenue is not collected by due date, public interest suffers and public welfare is given go bye. Such social philosophy is embedded in fiscal statute to realise interest from defaulters. Therefore the length of delay between due date of payment of duty and date of payment quantified interest payable on defaulted amount. Accordingly, the show cause notice issued on well founded allegation and reason cannot be discarded. Consequently, first appellate order is confirmed dismissing the appeal.
[Dictated & Pronounced in the open Court].
(D.N.PANDA) JUDICIAL MEMBER Anita